TSMC's August Sales Increase 33% Year-on-Year

On the 10th, Bloomberg reported that Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturing) company, saw its August sales increase by 33% compared to last year.

TSMC's August sales reached 250.87 billion Taiwan dollars (approximately 10.4738 trillion Korean won), up 33% year-on-year. Compared to the previous month, sales decreased by 2.4%.

[Image source=AFP Yonhap News]

Bloomberg described this as a positive signal for investors betting on the smartphone market and Nvidia's artificial intelligence (AI) chips. Although there have been recent concerns that the market has overestimated the sustainability of AI infrastructure spending, this could dispel such worries. More than half of TSMC's sales come from the high-performance computing sector, which is influenced by AI demand.

TSMC is also a major manufacturer producing the main processors for Apple's iPhones. Apple unveiled the iPhone 16 series the day before. Wall Street expects demand for mobile devices to rebound.

Analysts forecast that TSMC's sales will grow by 37% in the third quarter.

Initially, TSMC expected its annual sales this year to increase by the low to mid-20% range compared to the previous year, but in July, it raised its sales forecast to a mid-20% increase.